The statement is false because an audit is designed to provide reasonable assurance that the financial statements are free from material misstatement.
An auditor's responsibility is to express an opinion on the financial statements taken as a whole, and not on all information included in the CAFR. While an auditor may review the other information included in the CAFR, they are not required to audit this information.
The Governmental Accounting Standards Board (GASB) requires that the financial statements in the CAFR be audited in accordance with generally accepted auditing standards (GAAS) and Government Auditing Standards (GAS), which are established by the American Institute of Certified Public Accountants (AICPA) and the U.S. Government Accountability Office (GAO), respectively.
The scope of an audit is determined by the auditor's professional judgment, and it typically focuses on the financial statements and the accompanying notes.
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4. People in the organisations carry out diverse tasks with the aim to achieve
(a) Different objectives
(b) Common objectives
(c) Both of the above
(d) None of the above
Answer:
(b) Common objectives
Explanation:
People and departments in an organization perform different functions, but all focus on achieving its objectives. An organization's top management sets the goals and targets for a particular period. It then identifies specific actions that need to be accomplished to achieve the set goals.
The identified actions are distributed to various departments for implementation. Each department will break down its activities into small tasks and assign them to individual workers. Every employee will be working to achieve their set objectives. If all workers achieve their targets, the departments will meet their objectives, and so is the organization's goals.
Which of the following is not an example of a multichannel retailer?
A. Abercrombie & Fitch
B.McDonald's
C.Target
D.None of the above
Answer:
mcdonalds!!!!
Explanation:
!its right trust me those ppl who commented above are wrong, i put it in on od and it was right! on god bro.
Why is account management important in the vegetable farming ? give reason .
Answer:
Money
Explanation:
The expected result of farming would be to make money, account management would help the most in making money. With account management, you can see how well your farm is producing money which in turn can tell you if you are growing quality crops or a crop that your clients want the most.
Answer:
It is important to appreciate the fact that modern business management principles can assist the farmer or farm manager, no matter how small his farm may be and however meager his capital. This is because of the two major tasks facing today’s farm managers.
Explanation:
Importance of agriculture in the Food supply Agriculture is the world’s leading source of food items. All the food substances that are essential viz. Agriculture produces vegetables, proteins, and oils. The carbohydrates provide all living beings with energy.
calculate the future value of the following annuity streams: a. $4,000 received each year for 4 years on the last day of each year if your investments pay 6 percent compounded annually.
The future value of receiving $4,000 each year for 4 years, assuming a 6% interest rate compounded annually, is approximately $17,049.84.
To calculate the future value of an annuity stream, we can use the formula for the future value of an ordinary annuity:
Future Value = Payment × [(1 + Interest Rate)^(Number of Periods) - 1] / Interest Rate
In this case, we have:
Payment = $4,000 (the amount received each year)
Interest Rate = 6% (or 0.06, expressed as a decimal)
Number of Periods = 4 years
Plugging these values into the formula, we get:
Future Value = $4,000 × [(1 + 0.06)⁴ - 1] / 0.06
Calculating the expression inside the brackets first:
(1 + 0.06)⁴ = 1.262476
Now we can calculate the future value:
Future Value = $4,000 × (1.262476 - 1) / 0.06
Future Value = $4,000 × 0.262476 / 0.06
Future Value ≈ $17,049.84
Therefore, the future value of receiving $4,000 each year for 4 years, assuming a 6% interest rate compounded annually, is approximately $17,049.84.
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What is the maximum amount of new loans the bank could lend with the given amounts of reserves?
The maximum amount of new loans to the bank could lend with the given amounts of reserve is; $400million.
Maximum amount of New loansIt follows from macroeconomics calculations that;
The maximum amount of new loans to the bank!= The current amount in reserves * The multiplier.
Given that the amount in reserves is $80 million.
$80 million * (1/20%)$80 million * (5) = $400 million.Ultimately, the maximum amount in new loans given the amount in reserves is; $400 million.
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The degree to which the members are attracted to each other and are motivated to stay in a group is known as:
A) productivity
B) teaming
C) training
D) cohesiveness
E) integration
The degree to which the members are attracted to each other and are motivated to stay in a group is known as cohesiveness. The correct option is D.
The degree to which the members are attracted to each other and are motivated to stay in a group is known as cohesiveness. Cohesiveness refers to the strength of the bond or attraction between individuals within a group. It reflects the extent to which members feel a sense of unity, camaraderie, and commitment towards the group.
Cohesiveness plays a crucial role in the functioning and effectiveness of a group. When a group is highly cohesive, members are more likely to communicate openly, collaborate effectively, and support one another. They tend to share common goals and values, which fosters a sense of belonging and commitment.
Cohesiveness also enhances motivation and satisfaction among group members, as they feel valued and supported within the group context.
Moreover, cohesiveness has a positive impact on group performance. When individuals are attracted to the group and motivated to stay, they are more likely to actively participate, contribute their skills and knowledge, and work towards achieving the group's objectives.
This increased engagement and collaboration lead to improved productivity, problem-solving, and decision-making within the group.
In summary, cohesiveness is the degree to which group members are attracted to each other and motivated to stay in the group. It promotes effective communication, collaboration, and commitment, leading to enhanced group performance and member satisfaction.
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discussion
100 words pls
Description In the "Prisoner's Dilemma" game, what is the dilemma? [You can think of the pricing choices oligopolists face (high price or low price); why does that present a dilemma to the oligopolist
In the "Prisoner's-Dilemma" game, the dilemma arises from the conflict between individual self-interest and collective rationality. It is a situation where two individuals, acting in their own self-interest, make decisions that result in a collectively suboptimal outcome.
In the context of pricing choices faced by oligopolists, the dilemma arises because each firm has the incentive to set a low price to gain a larger market share and maximize its own profits. However, if both firms set low prices, it leads to intense price competition, reduced profits for both firms, and an overall suboptimal outcome for the industry. The dilemma lies in the fact that even though both firms would benefit from cooperation and collectively setting higher prices to maximize their joint profits, each firm has an incentive to deviate from this cooperative outcome and set a lower price to gain a competitive advantage. This results in a situation where both firms end up worse off than if they had cooperated. The dilemma presents a challenge to oligopolists as they must carefully consider the actions and strategies of their competitors and balance their own self-interest with the potential collective benefits of cooperation. It highlights the tension between individual gain and mutual cooperation, which can have significant implications for market outcomes and overall industry performance.
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Can someone hurry and help me please!! If you answer be at least 99% sure. Thank you!
What is a likely result of an increase in trade between nations?
A. It will provide consumers with more choice at lower prices.
B. It will increase the cost of goods due to increased competition.
C. It will lower the standard of living in the weaker trade nation.
D. It will restrict the market for domestic products.
Answer:
The answer is A. It will provide consumers with more choice at lower prices.
Explanation:
Option (a), which will give customers more choices at a reduced cost, is the best choice.
What is a likely outcome of an increase in international trade?Trade allows for the expansion of markets and access to products and services that might not otherwise be available locally. The competitiveness in the market has increased as a result of global trade. The cost of the final product for the consumer is reduced as a result of increased pricing competition.
Because it promotes market specialization, fosters innovation, and decreases the cost of commodities globally, trade is crucial for maintaining a competitive global economy. A further benefit of trade is having access to goods and services that may be more affordable and of higher quality than those that are provided domestically.
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The costs per equivalent unit of direct materials and conversion in the rolling department of oak ridge steel company are 180 and 62
Answer:
Equivalent units of direct materials= $180 per tons
Equivalent units of conversion =$62 per tons
Explanation:
Calculation to Determine the direct materials and conversion costs per equivalent unit.
Using this formula
Equivalent units of direct materials=Cost of direct materials transferred/Total equivalent units for direct materials
Let plug in the formula
Equivalent units of direct materials= $432,000/2,400
Equivalent units of direct materials= $180 per tons
Therefore the direct materials cost per equivalent unit will be $180 per tons.
Calculation for Equivalent units of conversion using this formula
Equivalent units of conversion=Conversion cost /Total equivalent units for Conversion
Let plug in the formula
Equivalent units of conversion=$144,150/2,325
Equivalent units of conversion= $62 per tons
Therefore the conversion cost per equivalent unit will be $62 per tons.
When plotting log wages (y-axis) against years of schooling (x-axis), the slope of the regression line indicates Group of answer choices the average years of schooling. the economic return to each additional year of schooling measured in dollars. the average wage. the economic return to each additional year of schooling measured in percentage terms. the average logged wage.
Answer:
When plotting log wages (y-axis) against years of schooling (x-axis), the slope of the regression line indicates
the economic return to each additional year of schooling measured in dollars.
Explanation:
While the slope indicates the steepness of a line, the intercept indicates the location where the slope intersects an axis. Together, the slope and the intercept define the linear relationship between the two variables: the independent and the dependent variables. They can be used to estimate an average rate of change. In a line of best fit, described by the equation ŷ = bX + a, the slope of the line is b while a is the intercept (i.e., the value of Y when X = 0).
a refusal to buy items in order to show disapproval is called:
The act of refusing to buy items in order to show disapproval is called a boycott.
A boycott is a form of protest in which a group of individuals or organizations refuse to purchase or use goods or services from a particular person, company, or country, usually as a form of political or social protest. The goal of a boycott is to exert economic or social pressure on the target to change their behavior or policies.
Boycotts have been used for a variety of reasons, including to protest human rights abuses, labor practices, environmental policies, or political decisions. They can be initiated by individuals or groups and can be either short-term or long-term.
Some well-known examples of boycotts include the Montgomery Bus Boycott in the US Civil Rights Movement, the global boycott of South Africa during apartheid, and the current boycotts of companies associated with Israel by some pro-Palestinian groups.
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is sueing someone for 50,000 dollars for no reason an example of integrity because recently a neighbor in my neighborhood was being rude and then continued to say that people who are not like him do not have integrity... (before get further in just know this guy smokes weed and get drunk like every day and also know one of my other neighbors works for selling houses in my neighborhood) he then sues one of my neighbors who sells houses for no reason and for 50,000 dollars. So...is this integrity lol also let me know if I should tell more crazy stories in my life on brainly lol.
Answer:
ohExplanation:
.............................
Nancy is an economist who believes that the best way to grow the economy is through tax cuts to increase the incentive to work and invest. Though these tax cuts might initially increase the budget deficit, Nancy is convinced that the economic growth that results will actually increase government tax revenue. Nancy is best described as a _____.'
Answer:
supply-side economist
Explanation:
In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.
Supply-side economist can be defined as economists who believes that the ability and willingness of the producers of goods and services to manufacture or produce sets the pace for the economic growth of a country.
This ultimately implies that, increasing the supply of goods and services would cause an economic growth for a country.
Generally, supply-side economist are of the opinion that one of the best way to grow a country's economy is by introducing tax cuts so as to increase the incentive for households to work and invest.
However, these tax cuts might initially cause the budget deficit to rise, supply-side economist are convinced that the consequent economic growth will give rise to an increase in government tax revenue.
Hence, Nancy is best described as a supply-side economist in this scenario.
Watters Umbrella Corp. issued 15-year bonds 2 years ago at a coupon rate of 8.2 percent. The bonds make semiannual payments. If these bonds currently sell for 85 percent of par value, what is the YTM? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer: 10.32%
Explanation:
Given the following :
Assume par value of $1000
Payment is made semianually
Payment per period (PMT) = 85% of par value = [(8.2/100) × 1000] ÷ 2 = 82 / 2 = $41
Present value(PV) = 85% × 100 = $850
Years to maturity = (15 - 2) = 13 years
Therefore, number of periods = 13 × 2 = 26 ( since payment is made semianually).
In other to avoid computational complexity, we can use the online yield to maturity calculator or the excel formula :
Using the online calculator :
Yield to maturity = 10.32%
write the different profession and human resources related to engineering and explain any two of them
Answer:
The professions related to engineering includes
Mechanical engineering
Biomedical engineering
Electronics engineering
Chemical (process) engineering
Petroleum engineering
Materials engineering
Human resources related to engineering includes
Welders
Mechanics
Plumbers
Electricians
Fitters
Carpenters
Brick layers
Operators
Machinist
Explanation:
Mechanical engineering profession
Mechanical engineering profession focuses on the branch of engineering that is related to designing, construction, and implementation of machine that provides energy, force or motion, in industry, homes, school, or office to meet the needs of the society
Welder
A welder is a person that regularly makes use of equipment meant for welding to create acceptable quality welds
Telecommuting involves all of the following EXCEPT A using e-mail and other technologies to stay in touch with the workplace. B employees spending one or two days a week at home. C reductions in absenteeism and turnover. D organization savings on facilities such as parking. E higher pay for working under special conditions.
Telecommuting involves all of the following EXCEPT: E higher pay for working under special conditions..
What is Telecommuting ?Telecommuting has to do with the process of making use of email to send messages, working from home as well as making use of telephone to communicate.
Based on this telecommuting includes the following:
Using e-mail and other technologies to stay in touch with the workplace.Employees spending one or two days a week at home. Reductions in absenteeism and turnover. Organization savings on facilities such as parking.Therefore we can conclude that the correct option is E.
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Question 13 1 pts If a monopoly or a monopolistic competitor raises their prices, then the quantity demanded for the monopoly product always falls to zero. decline in quantity demanded will be smaller for the monopoly quantity demanded for the monopolistic competitor always falls to zero. decline in quantity demanded will be larger for the monopoly,
The statement "quantity demanded for the monopoly product always falls to zero" is incorrect.
If a monopoly raises its prices, the decline in quantity demanded will be smaller compared to a monopolistic competitor. This is because a monopoly has no close substitutes, and consumers have no other option but to continue buying the product at a higher price. In contrast, a monopolistic competitor has many substitutes available, and consumers are likely to switch to a similar product if the price increases, causing a larger decline in quantity demanded.
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Which two primary capabilities of the internet provide building blocks for buyer-seller relationships?.
The two primary capabilities of the internet provide building blocks for buyer-seller relationships are: interactivity, individuality.
What is the purpose of the internet and how does it work?
Many different forms of data and media are transmitted between connected devices over the internet, a worldwide computer network. It operates using a Transport Control Protocol (TCP) and Internet Protocol compliant packet-routing network (IP).
As a result, interactivity can enhance learning and information processing as users make advantage of the technical characteristics of the interface. There is scientific support for the hypothesis that contact can enhance both information processing and learning in circumstances connected to health.
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your friends, jim and joey (16) are twin brothers and just received a $1000 inheritance from a wealthy aunt. jim wants the two of them to put their money together and buy a 4-wheeler. joey says he wants to put his money in a savings account. jim comes to you to ask you to help persuade joey to buy the 4-wheeler. what is your best financial advice?
The best argument to persuade Joey to buy the 4-wheeler is to inform him that keeping the money in a savings account would cause that money to loose value overtime (due to interest rates). Therefore, to ensure the best use of the $1000, it is ideal to use that money rather than save it.
the list price of a computer was $100,000. the sales tax on the computer was 5%. the delivery cost was $1,000. the cost to assemble the computer was $500. the equipment account should be debited for a total of ______.
The equipment account should be debited for a total of $106,500.
Using this formula
Equipment account=List price+(Sales tax × List Price)+ Delivery cost+ Assemble cost
Where:
List price=$100,000
Sales tax=5%
Delivery cost=$1,000
Assemble cost=$500
Let plug in the formula
Equipment account=$100,000+(5%×$100,000)+$1,000+$500
Equipment account$100,000+$5,000+$1,000+$500
Equipment account=$106,500
Inconclusion the equipment account should be debited for a total of $106,500.
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Which economic tool would most likely be used as part of a contractionary
monetary policy?
A. Lowering the reserve requirement
O B. Raising interest on reserves
C. Buying treasury securities
D. Reducing the discount rate
SUBMIT
Answer:
O B. Raising interest on reserves
Explanation:
The Federal Reserve expects banks to keep a percentage of customer deposits as reserves. The reserves cater to both the normal and unexpected withdrawals. The Federal Reserve (Fed) also uses reserve requirements as a monetary policy tool.
Interest on reserves is one of the monetary policy tools that the Fed uses regularly. The Fed pays interest on any excess reserves held by the banks. Increasing the interest paid on reserves encourages banks to hold more money. Decreases the interest prompts the banks to lend out more. Contractionary monetary policies are measures aimed at decreasing the money supply in the economy. Increasing interest on reserves increases money held in the banking sectors, thereby slowing down money circulation.
Answer: B. Raising interest on reserves
Explanation:
Just got it right!!!
If the state minimum hourly wage is higher than the federal minimum hourly wage then employers ____.
A. may offer a wage between the state and federal levels
B. pay the higher wage rate but are exempt from paying taxes
C. must pay workers the higher state rate
D. are allowed to pay the lower federal rate
Answer:
C
Explanation:
If the state minimum hourly wage is higher than the federal minimum hourly wage then employers must pay workers the higher state rate.
What is the minimum wage rate?
This is the lowest rate that the employers of labor in a state are supposed to pay their workers.
The employers are to pay the workers based on the rate that has been set in the state that they reside.
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tire valet case is there a growing need for this service? what conditions in the economy would support the growth of this service
Growth in both the workforce's size and productivity are generally understood. Either one can grow the economy overall, but only substantial productivity growth can raise per capita GDP and income.
The gross domestic product of a country is often used as a proxy for the value added produced via the production of goods and services over a given time period (GDP). It also also takes into consideration the revenue generated by such manufacturing, or the total amount spent on finished goods and services (less imports). Gross domestic product, more commonly abbreviated as GDP, is one of the most significant. This economic indicator measures the total monetary value of goods and services produced in the nation over a specific time period, including health care, education, and textiles, machinery, and food products. 2% to 3% is the best range for GDP growth. How robust the economy is can be determined by GDP growth.
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What conditions in the economy would support growth of this service?
Can someone help me with this question please
How does you credit rating affect your credit score?
Answer:
Your credit rating decreases each time you are missing a payment or late on a payment which affects your credit score. With your credit score lowering each time, it will affect you from many opportunities like getting a loan for a lower interests rate and it will affect on whatever major purchase you make and you want to borrow money since the lender will not think you are a reliable person that will pay on time.
Explanation:
Hope that helps
If someone asks you a question in the workplace, but you don't know what to answer, what is something you should not say
When you're stumped for an answer in workplace to a question, use this tried-and-true "fail-safe" solution.
What to say in an interview when you're unable to respond to a question?Think about responding with something like, "That's a good question; can I think about it for a bit and get back to you later?" or "Great query! I can respond to some of it, but I'd like to consider it further and get back to you.
What should you say when you don't have the answer to a question?Try saying something like, "That's an interesting question, could I take some time to think it over and get back to you?" or "I can give you a partial answer to that enormous question.
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Question:-
How do you respond when you don't know the answer at work?
Consider a firm whose 1-year zero-coupon bonds currently yield 10.7%, and 2-year bonds currently yield 13.5\%. The yields on 1-year and 2-year zero-coupon Treasury bonds (i.e., the 1- year and 2-year spot rates) are 6.6% and 8.2% respectively. Assume that bondholders do not expect to recover anything in the case of default. Assume a periodicity of 1. What is this firm's implied cumulative probability of default? Express your answer in percent and round your answer to 2 decimal places. For example, if your answer is 0.09457, please write down 9.46 (without the percent sign).
The firm's implied cumulative probability of default is 4.45%. To calculate the implied cumulative probability of default, we can use the difference between the yield on the firm's bonds and the corresponding risk-free spot rates.
In this case, the difference between the yield on 1-year bonds (10.7%) and the 1-year risk-free spot rate (6.6%) gives us a spread of 4.1%. Similarly, the difference between the yield on 2-year bonds (13.5%) and the 2-year risk-free spot rate (8.2%) gives us a spread of 5.3%.
By comparing the spreads of the firm's bonds with the corresponding risk-free spot rates, we can estimate the implied cumulative probability of default. In this case, the implied cumulative probability of default is calculated as the average of the two spreads, which is (4.1% + 5.3%) / 2 = 4.7%. Rounded to two decimal places, the implied cumulative probability of default is 4.45%.
This implied cumulative probability of default represents the market's assessment of the firm's credit risk based on the yield spreads of its bonds. It indicates the probability that the firm will default on its bond payments over the specified time period. A higher implied cumulative probability of default suggests a higher perceived credit risk and indicates that investors require a higher yield to compensate for the increased risk.
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Suppose that, before filing for bankruptcy, Stephen had been involved in an automobile accident. The attending officers determined that Stephen's blood-alcohol level was above the legal limit. An injured passenger in the other car sued Stephen and won a settlement. Further suppose that Stephen, as part of his Chapter 13 bankruptcy, attempted to discharge the car-accident settlement in addition to attempting to discharge his obligation for his children's college expenses. Would he be successful?
Answer:
No, because in bankruptcy repayment plans, certain debts are not dischargeable, including those related to injury or property damage caused while driving drunk.
Explanation:
Dischargeable debts are defined as amounts owed that can be wiped out by one's bankruptcy discharge.
Once the bankruptcy discharge is issued, creditors in such cases can no longer collect on the debts
An example of dischargeable debts is credit card debt and medical bills
In this scenario however where Stephen had been involved in an automobile accident and attending officers determined that Stephen's blood-alcohol level was above the legal limit.
Any debt in relation to the injured party cannot be discharged through bankruptcy
What does AWS NOT charge for? (Choose two.)
a. data storage on AWS servers
b. data dumps to external media
c. data transfer between services in the same AWS Region
d. outbound data transfer
e. inbound data transfer
AWS does not charge for two of the options mentioned in the question. These are:
c. data transfer between services in the same AWS Region
e. inbound data transfer
AWS provides a wide range of cloud-based services, including data storage, data transfer, and data processing. While many of these services do incur charges, there are some that are provided at no cost.
One of these is data transfer between services in the same AWS Region. This means that if you are transferring data between two AWS services, such as Amazon EC2 and Amazon S3, within the same region, you will not be charged for the data transfer.
Another service that is provided at no cost is inbound data transfer. This means that you will not be charged for any data that is transferred into AWS from an external source.
It is important to note that while these services are provided at no cost, there may be charges for other AWS services that are used in conjunction with them. For example, while data transfer between services in the same region is free, you may still be charged for the use of the services themselves.
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in this country, enter your response here million people are unemployed, and the unemployment rate is enter your response here%. (round your responses to one decimal place.) part 2 the labor force participation rate is enter your response here%. (round your answer to the nearest percent.) . . . question content area right part 1
To calculate the number of unemployed people, you need to know the total population of the country and the labor force participation rate. Let's say the total population is 100 million and the labor force participation rate is 60%.
Step 1: Calculate the labor force:
Labor force = Total population * Labor force participation rate
Labor force = 100 million * 60% = 60 million
Step 2: Calculate the number of unemployed people:
Unemployed = Labor force * Unemployment rate
Unemployed = 60 million * Unemployment rate
Given that is the unemployment rate, we can substitute this value into the equation:
Unemployed = 60 million * [enter your response here]% Let's assume the unemployment rate is 5%. Substituting this value into the equation: Unemployed = 60 million * 5% = 3 million Therefore, in this country, 3 million people are unemployed. Moving on to part 2, the labor force participation rate is . In the example above, the labor force participation rate was 60%.
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Stephenson Limited produces a variety of products for the computing industry. The company’s CEO plans to produce a new product, WiFi router and asked the controller to prepare some information and be ready to meet with him to discuss about it. In preparing for the meeting, the controller accumulated the following data: Selling price of a router $1,250 Direct materials per router $270 Direct labour per router $130 Variable overhead per router $80 Total fixed costs $120,000
Required: a) Calculate the contribution margin per unit, break-even point in units and in sales dollar.
b) Calculate the number of units that must be sold and the amount of sales revenue to earn $300,000 of profit.
c) Calculate the break-even point in units and in sales dollar if the company were to reduce variable costs by $220 per unit by investing in technology resulting in an overall increase of $20,000 in total fixed costs? d) The CEO believes the company can increase sales by 50 units if advertising expense is increased by $31,000 based on the original data. Justify whether the company should increase advertising expenditure.
a) Contribution Margin per Unit: $770, Break-Even Point in Units: ≈ 155.84, Break-Even Point in Sales Dollars: ≈ $194,800.
b) Number of Units for $300,000 Profit: ≈ 584.42, Sales Revenue for $300,000 Profit: ≈ $730,525.
c) New Contribution Margin per Unit: $1,410, New Break-Even Point in Units: ≈ 94.33, New Break-Even Point in Sales Dollars: ≈ $117,912.50.
d) Additional Sales Revenue: $62,500, Contribution from Additional Sales: $38,500, Additional Advertising Expense: $31,000. Conclusion: Increase in advertising expenditure is justified as it would result in a positive contribution to profit.
a) To calculate the contribution margin per unit, break-even point in units, and break-even point in sales dollars, we need the following information:
Selling price per router: $1,250
Direct materials per router: $270
Direct labor per router: $130
Variable overhead per router: $80
Total fixed costs: $120,000
Contribution Margin per Unit:
Contribution Margin per Unit = Selling Price per Unit - Variable Costs per Unit
Contribution Margin per Unit = $1,250 - ($270 + $130 + $80)
Contribution Margin per Unit = $1,250 - $480
Contribution Margin per Unit = $770
Break-Even Point in Units:
Break-Even Point in Units = Total Fixed Costs / Contribution Margin per Unit
Break-Even Point in Units = $120,000 / $770
Break-Even Point in Units ≈ 155.84
Break-Even Point in Sales Dollars:
Break-Even Point in Sales Dollars = Break-Even Point in Units × Selling Price per Unit
Break-Even Point in Sales Dollars = 155.84 × $1,250
Break-Even Point in Sales Dollars ≈ $194,800
b) To calculate the number of units and sales revenue needed to earn $300,000 of profit, we need to consider the contribution margin per unit and total fixed costs:
Number of Units for $300,000 Profit:
Number of Units = (Total Fixed Costs + Desired Profit) / Contribution Margin per Unit
Number of Units = ($120,000 + $300,000) / $770
Number of Units ≈ 584.42
Sales Revenue for $300,000 Profit:
Sales Revenue = Number of Units × Selling Price per Unit
Sales Revenue = 584.42 × $1,250
Sales Revenue ≈ $730,525
c) If the company reduces variable costs by $220 per unit and incurs an additional $20,000 in total fixed costs, the new calculations would be:
New Contribution Margin per Unit = $1,250 - ($270 - $220 + $130 + $80) = $1,410
New Break-Even Point in Units = ($120,000 + $20,000) / $1,410 ≈ 94.33
New Break-Even Point in Sales Dollars = 94.33 × $1,250 ≈ $117,912.50
d) To determine whether the company should increase advertising expenditure, we need to consider the additional sales generated by the increased advertising and compare it to the additional expense:
Contribution Margin per Unit: $770
Additional Units Sold: 50
Additional Sales Revenue: 50 × $1,250 = $62,500
Contribution from Additional Sales = Additional Units Sold × Contribution Margin per Unit = 50 × $770 = $38,500
Additional Advertising Expense: $31,000
Since the contribution from the additional sales ($38,500) exceeds the additional advertising expense ($31,000), it would be justified for the company to increase advertising expenditure as it would result in a positive contribution to profit.
Please note that these calculations are based on the provided data and assumptions, and actual results may vary.
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